The Medicare tax rate for 2025 is 1.45% for both employees and employers (2.9% combined), according to the 2024 Inflation Adjustment Revenue Procedure [https://www.irs.gov/pub/irs-drop/rp-24-40.pdf]. Unlike Social Security tax, there is no wage base limit for Medicare tax. All covered wages are subject to Medicare tax. Additionally, individuals with earned income above $200,000 ($250,000 for married couples filing jointly) must pay an additional 0.9% Medicare tax on the excess amount, as per Section 3101(b)(2) [https://www.law.cornell.edu/uscode/text/26/3101#b_2] of the Internal Revenue Code.
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